Sold JBBB (4.3%)

A falling Fed Funds Rate reduces CLO distributions (because they hold variable rate loans). There’s a time lag of a few months, and the change is gradual, but clear.

The yield changes every month with the variable distribution, but annualizing the most recent $0.2626 distribution equates to a yield of 6.6%. The low volatility of the higher rated CLO’s like JBBB has been nice, but 6.6% (and falling) isn’t enough yield compared to other opportunities available in the market.

These relatively low risk (compared to equity CLO’s) funds were purchased when the tariff policies were causing high levels of volatility and uncertainty. Though not completely resolved, the level of uncertainty around tariffs has fallen.

Sold CLOZ (3.4% Allocation)

Same story as JBBB, but a slightly higher yield and volatility. CLOZ yielded 9% when I bought it and now it’s down to the 7’s.

What About EIC?

That leaves just one CLO fund in the portfolio, EIC, a much higher risk holding than JBBB or JAAA because it holds lower rated debt tranches, and a small equity tranche. EIC has a current yield of 12.2%, and has performed poorly in 2025. A recent 1.5 million share buy back, and a price that’s 17% below its Net Asset Value, are indicators that I don’t want to dump this one while it's down. My current yield on cost for EIC is 8.7%.

Sold BITO (0.6% Allocation)

BITO uses futures to generate yield from the price volatility of Bitcoin. BTCI uses options to do the same. I didn’t know which strategy would prevail. So far, BTCI is ahead.

Sold PFN (1.9% Allocation)

I’ve been happy with this PIMCO fund, but PCN has a more consistent distribution history and less leverage.

Sold IGLD (1.2% Allocation)

Gold has been on fire this year, and IGLD has performed well. However, Kurv’s (newer) KGLD fund is off to a great start, as explained down below.

Bought PTY (1.9% Allocation)

I’ve had my eye on this PIMCO fund for a while but the price premium was sky high. Thanks to Jamie Dimon’s “cockroach” comment, the price has become more attractive.

Bought PCN (1.9% Allocation)

Same story as PTY…oversold and the price is still at a premium to its NAV, but much more reasonable than its long term average. This credit fund is similar to PTY. Both were reviewed in this recent video.

Bought PDI (1% Allocation)

This higher yielding, higher risk PIMCO cousin to PCN and PTY has also become more affordable recently. Note that the Net Asset Value has not fallen. I’ve owned this one in the past and plan to keep it unless the price premium becomes excessive (again).

Bought NIHI (2% Allocation)

I don’t want to be 100% dependent on US assets, and a steady US dollar, but generating consistent income outside the US is challenging. NEOS’s new global fund generates an 8-10% yield on a diversified portfolio of stocks from developed countries outside of North America. It sells calls on the IEFA fund, which is based on the MSCI EAFE index. I recently discussed NIHI in detail with the Co-founder of NEOS, Garrett Paolella, in this interview.

Bought KQQQ (2% Allocation)

This tech fund is actively managed by Kurv, yields 17%, and has given the NASDAQ 100 a run for its money. Stay tuned for an interview about KQQQ with the CEO of Kurv, Howard Chan.

Bought KGLD (1.2% Allocation)

Kurv has also thrown its hat into the commodities ring, with a gold fund and a silver fund. The gold fund has outperformed IGLD since inception. Hence the switch from IGLD to KGLD. Keeping an eye on the KSLV silver fund too…

BTCI: Increased Allocation (from 1.6% to 3.1%)

As explained earlier, BTCI has slightly outperformed BITO. I also prefer BTCI’s more consistent distributions. I moved the BITO funds over to BTCI, and also increased the overall allocation to BTCI because the Bitcoin price corrected recently. If Bitcoin continues to correct, I’m open to increasing the allocation to as much as 5%.